The aggregated crypto markets have remained stuck within a firm bout of consolidation for the past several days and weeks, which has come about as Bitcoin fails to garner any momentum – in either direction – as it trades in the lower-$7,000 region.
One analyst is now noting that he anticipates Bitcoin to slowly climb higher in the coming year, which could provide multiple ideal long opportunities for smaller cryptocurrencies.
Analyst: Bitcoin’s Slow Upwards Grind to Favor Altcoins
Bitcoin’s consolidation period within the lower-$7,000 region is currently showing no signs of letting up anytime soon, as each attempt by both bulls and bears to spark momentum in one direction or another has been unsuccessful, with bulls defending the support at $7,000 as bears defend resistance at $7,700.
Most major altcoins have been closely mirroring Bitcoin’s price action in recent times, which is incredibly common during times where BTC finds itself with lessened levels of volatility and trading volume.
It is important to note that the vast majority of consolidation phases like this one are followed by major movements that spark short-term trends.
CryptoGainz, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Bitcoin will see some decent upwards momentum throughout 2020, which will lead the cryptocurrency to slowly grind higher.
This slow upwards grind could help catalyze the prophesized “altseason” in which major altcoins see significant gains against their BTC trading pairs.
“Best play rn imo is to long dips on alt-btc pairs. Btc is going to underperform alts but slowly grind up I think. When btc stops going up but alts keep going up, altbtc pairs will have a short squeeze. Then short btcusd and alt-usd pairs,” he explained.
Importantly, it may still be too early to conclude that the market’s recent lows will mark a long-term bottom that allows them to climb higher in 2020, as major altcoins like Ethereum are still trading just a hair above their key support levels.
CryptoDude, another popular cryptocurrency analyst, spoke about Ethereum in a recent tweet, explaining that its bulls are “trying to hold an important level,” while referencing a chart showing the support it has formed around $125.
If Bitcoin posts a sustained break above its range highs at $7,700 in the near-term, it is probable that it will be caught within a firm uptrend for the first part of the new year, which could in turn provide altcoins with some much needed upwards momentum.